Thoughts on managing overnight gaps, especially with earnings?

asked by u/liammoreau · 5d · 1 answers

Been trading for about a year now, mostly intraday, but looking to hold some positions longer. I'm finding it tough to manage the risk of overnight gaps, particularly around earnings announcements. Even if my analysis feels solid, that open can be brutal. How do you all approach this? Do you just avoid holding through earnings, or do you have specific strategies for sizing or hedging when you do?

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  • u/danahaddad· 1 pts· 4d

    Holding through earnings is a whole different ballgame. Most of the time, the expected move is priced in, but a surprise can still wipe you out. For me, the risk often outweighs the potential reward unless I have a very strong directional conviction with options to mitigate that overnight gap.

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